Report: India became 5th largest economy in 2019 overtaking UK, France

India
emerged as the world’s fifth largest economy by overtaking the UK and France in
2019, says a report.

A US-based
think tank World Population Review in its report said that India is developing
into an open-market economy from its previous autarkic policies.

“India’s
economy is the fifth largest in the world with a GDP of USD 2.94 trillion,
overtaking the UK and France in 2019 to take the fifth spot,” it said.

The size of
the UK economy is USD 2.83 trillion and that of France is USD 2.71 trillion.

The report
further said that in purchasing power parity (PPP) terms, India’s GDP (PPP) is
USD 10.51 trillion, exceeding that of Japan and Germany. Due to India’s high
population, India’s GDP per capita is USD 2,170 (for comparison, the US is USD
62,794).

India’s real
GDP growth, however, it said is expected to weaken for the third straight year
from 7.5 per cent to 5 per cent.

The report
observed that India’s economic liberalisation began in the early 1990s and
included industrial deregulation, reduced control on foreign trade and
investment, and privatisation of state-owned enterprises.

“These
measures have helped India accelerate economic growth,” it said.

India’s
service sector is the fast-growing sector in the world accounting for 60% of
the economy and 28% of employment, the report said, adding that manufacturing
and agriculture are two other significant sectors of the economy.

The US-based
World Population Review is an independent organisation without any political
affiliations.